MANAGER’S REPORT

11 January. 2011

The snowpack is at 135% and if the winter precipitation continues then we are looking at a favorable irrigation season in 2011.  Wickiup and Crane Prairie reservoirs are filling nicely and may be able to fill to 100% before April which will be advantageous for SPP Hydro production this winter.

The stock water runs, despite some very frigid conditions, continued close to the original schedule on both canals. Ice and snow in the canals do cause water management issues and the District has to be more conservative on how fast it can run water down the canals and ditches in order to avoid ice dams and subsequent flooding.  Increased development also causes increased concerns with flooding also. The next winter stock runs are scheduled for the PBC on Feb 7-11 and the COC Feb 14-17. 

The US Congress and the Oregon legislature are already in session or starting shortly.  Budget impacts will play strongly in both venues this coming year but will not preclude other legislation involving natural resources from taking place.  COID as a member of the DBBC along with Crook County and the City of Prineville have been active pursuing legislation with Sen Wyden and Merkley along with Congressman Greg Walden’s offices for issues on the Crooked River and conservation project funding.  It is anticipated that legislation will be forthcoming for both the US Senate and House (see press release in Manger Report). The Oregon legislature will be dealing with state budgetary issues but that natural resource legislation will still be brought forward.  COID engages and tracks all state legislation as a member of the Oregon Water Resource Congress in addition to working with our region’s legislators. 

COID and the Oregon Department of Energy (ODOE) have been actively discussing ramifications and impact of new administrative rules placed on the Juniper Ridge BETC funds. There is a challenge with the Oregon Department of Revenue and the interpretation of statute whether or not federal grant funds could possibly lower the amount of the original BETC amounts forthcoming to COID.  COID along with Swalley Irrigation District and Three Sisters Irrigation District have been working with Senator Chris Telfer’s office on these issues and will be actively engaged together on this issue which may require legislation to remedy.

Opportunities

  • COID filed an application with the Oregon Dept of Energy for a pass-thru BETC for  Juniper Ridge Phase II.  Results of the application were originally to be known before the end of 2010, but an announcement will not be forthcoming until March or April.
  • Discussions and preliminary evaluation of the Natel Energy Hydroelectric Machine technology are progressing. COID will be actively involved with continued evaluation of project costs and several suitable sites throughout the District in the coming year.
  • COID received an Oregon Department of Energy Community Renewable Energy Feasibility Fund (CREFF) program grant of $36,000 to facilitate the feasibility of several hydro sites within the District.
  • COID, NUID and Swalley conducted physical inspections of the North Canal Dam in Bend.  This is a follow up inspection to accurately assess any erosion of key components of the downstream face and toe along with more detailed evaluation of the site for design of a fish ladder for upstream passage.
  • COID and BLM are proceeding with land appraisals and environmental inspections on the parcels included in the land swap authorized by Congress in the public lands bill passed this year in Badlands area east of Bend. 
  • FERC accepted COID’s preliminary permit application for Cline Falls.  A competing permit application was filed by KC Hydro Company  in August so FERC will decide which application  takes first position in a few months.  As COID is a municipal entity it should take first position under federal rules for permit applications.  If COID is successful in receiving first position it will have three years to develop an official project application for license.
  • COID filed for certification of  the Siphon Power Project (SPP) to the Low Impact Hydro Institute (LIHI) last fall and anticipate to have full certification by February. This enables COID to have fully certified Renewable Energy Credits (RECs) within Oregon’s Renewable Portfolio Standard (RPS) for both SPP and Juniper Ridge hydroelectric production. The RECs have a market value that can be sold to utilities and other generators of carbon based energy in order for these entities to come into compliance with the RPS.  There is also a strong possibility that COID may be able to sell RECs into the State of California as the market value of RECS is considerably higher in that market.  COID will continue to maximize the value of its hydroelectric assets beyond just selling the electricity going forward as these markets develop.

Challenge

  • The Deschutes Basin Board of Control has filed comments on the Ryan Ranch Meadow proposal to the US Forest Service. Ryan Ranch is an area above Bend below Benham Falls that the USFS wishes to establish as a wetland area. The DBBC has been in discussion with the Forest Service over its concerns of the concept to alter river flows and take water right water away from irrigation districts. A meeting with the USFS is scheduled for mid-January.
  • Issues continue to arise with patrons and the delivery of water to parcels past the District’s Point of Delivery.  The District is evaluating its existing statutory authorities and reviewing policies to assist in resolving these issues.
  • Persistence of patrons failing to beneficially use their water either due to economics, absentee ownership, or mismanagement resulting in potential confiscation by the District as the only viable option to prevent forfeiture.

STATUS REPORT

Juniper Ridge Piping & Hydroelectric Project

  • Commercial status – all construction finished. 
  • Final contractor payment pending punch list fixes and contractor lien releases
  • Generation realized during both stock runs to date this winter

Real Estate

  • One 20 acre parcel near Deschutes Market Road and Hwy 97 was listed for sale through Steve Scott Realtors.  Listing, as per District policies, was at the recently updated appraised value.  No offers have been received to date.  The remaining 20 acre parcel was not listed.

Status – In Process with no change in last month

  • COID and the Redmond School District filed and received approval of a partition plat to the City of Redmond.  Traffic issues in Redmond are affecting the timing of the zoning change possibility and therefore any potential sale to an interested buyer. 

Status – Paused.  ODOT and the City of Bend are developing a plan for traffic mitigation in north Bend that may be useful as a model for the Redmond area.  Bend and ODOT are prepared to sign agreements soon.

  • A Conditional Use permit was received for COID owned lands along Teal Road pending county road improvements.  Once completed the Board will evaluate for declaring surplus depending on market conditions and financial requirements of the District.

Status – In Process with no change in last month

Development 

  • The City of Bend has been working with the irrigation districts off and on over the past few years on developing a coordination agreement.  COID has recently engaged with Swalley, Arnold,Tumalo and the City of Bend on a memorandum of understanding to accomplish an inter-governmental agreement by the end of 2011.  If acceptable, all Board of Directors and City Council will vote to affirm in December. [The proposed MOU is attached]

Status – Ongoing. 

 

ON THE RADAR SCREEN

  • The Oregon Legislature will begin its new session in January 2011
  • Federal legislation and regulation of renewable energy projects